Economics (AS & A Level) · Oct / Nov 2025 · Paper 12 · Question 17

The diagram shows aggregate demand and aggregate supply curves for an economy. [diagram: general price level (vertical axis) against national output (horizontal axis), showing AS curve, AD curve and AD1 curve shifted down/left] What would cause a change in the aggregate demand from AD to AD1?

1. Agovernment campaigns to encourage household savings
2. Bconsumption of domestic instead of foreign goods
3. Ca decrease in the budget surplus
4. Dinvestment in knowledge-based enterprises

As printed in the paper